But i think the REIT would afford me the flexibility of almost no taxes and also allows me to attract more wealthy investors than a regular corporation setup.What state would you use for setting up a REIT?

For a rental, the property would need some updates, I figured no more than 5k (clean the carpet if doesn't need replacing, paint throughout the house, paint the kitchen cabinets (hideous diarrhea-green color).

The downsides are that if you allow them to know it, your tenants will be banging on your door on a regular basis.

Do you have updated windows to block it out?

steve,i talked to our agent and she said that $995 (the previous price) was a great price for the area. she said it's clean, nice, super maintained, updated, etc. she said nothing negative although i asked.her feedback was "there's a tenant for every house, and you have not found yours yet".i think the competition this year is fierce since more people like me purchased houses low and are renting them out. i am fine with that....but my house is the lowest price in the suburb. the agent asked for 1 month's rent to list it and she said she can rent it. i already "lost" 2 months rent. if it's true and she can do it, i should have gone with her...

Bill too many factors would weigh into this.You are looking at hard money with very high carrying costs at 60% occupancy as a regular lender won't touch it.Too easy to go from 60% to 40% or lower and the new lender has a fresh foreclosure on their hands.Unless you pay cash you will need a HML or private money and will have to pay low to get it to cash flow until you can refi into a lower debt service once stabilized.Is this a local,regional,or national bank??

I am certainly not down on wholesaling, and it is certainly not dead in this market, in fact, if you know how to lock up great deals, it can be a great source of income for you.I work in higher price point market areas (southern CA) and as such, my standard wholesale fee on a regular deal is around $10k, and I have made as much as $40k on deals in the past, it all depends on what the market will bear and how good of a spread you locked up in the first place.

It seems that is what makes it more difficult for a wholesaler to make deals they can close regularly.

I wanted to give you guys an update.

You list for sale at say $110k, then when you sell, the end buyer is paying $110k, just like any "regular" transaction, and 70k, goes to the family (less the option fee you already paid) and the rest goes to you, as the option holder.